According to this article credit card rates are the highest they have been for two years despite the fact that interest rates are at a historic low. According to the article a borrower now pays £26.40 more in interest on a £3,000 balance than they would have done two years ago. Although the Government has promised to clamp down on credit card companies which have failed to pass on the interest rate cuts it appears that banks are still able to charge their customers high rates and that charges continue to rise. In some ways you can see why in the current economic situation banks are reluctant to lend and with lending becoming more risky might charge a higher rate. However, that isn’t going to work in the long run if their customers simply can’t afford to pay the charges and the bank does not get their money back.